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SEBI urges govt to implement pension reforms

The PFRDA Bill, which has been pending for several years, seeks to open the pension sector to private sector and foreign investment in India

June 12, 2012 2:44 IST | India Infoline News Service
Speaking at the Annual Skoch Summit in Mumbai, SEBI (Securities and Exchange Board of India) chairman, UK Sinha has urged the government to implement pension reforms. He said that passing the PFRDA (Pension Fund Regulatory and Development Authority) Bill was not the end. The Bill will only serve a limited purpose.
The PFRDA Bill, which has been pending for several years, seeks to open the pension sector to private sector and foreign investment in India. The PFRDA Bill provides for establishment of a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds. Interim PFRDA is functioning since 2003 through an executive order.
The PFRDA, set up as a regulatory body for pension sector, is yet to get statutory powers as the Bill pertaining to that effect lapsed in Parliament with the expiry of last Lok Sabha in 2009.
To bring liquidity into the equity market, Mr Sinha highlighted the need for money coming through the pension fund route. He cited the example of the Employees' Provident Fund Organisation, which had about 40 million accounts adding to about Rs. 2 trillion.

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